News Release

Vietnam

JLL Market Watch W51 2016

2016-12-15T06:00:00Z

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Vietnam forecasts record 2016 US$15 billion foreign investment

Vietnam
forecasts disbursed foreign direct investment to rise to a record USD 15
million by the end of this year. The country may have a trade surplus of USD 2
billion to USD 3 billion, with exports likely rising 8 percent and estimated
economic growth may reach 6.3 percent in 2016.

The
Imex Pan Pacific Company Limited (IPP Group) has been sent a proposal to the
Ministry of Transport (MoT) for the project implementation of the construction
and investment in expanding the airport terminal system at Tan Son Nhat
International Airport. Its serviced capacity is around 10 million passengers
per year, bringing the total exploitation capacity of the airport up to 40 to
50 million passengers per year.

The
Hanoi People’s Committee has issued a decision adjusting the planning for the
new urban area in Me Tri, Trung Van and Phu Do wards in Nam Tu Liem District
with the total land area affected is 750,296 square meters. Beside to low- and
high-rise buildings are located in the south-west and eastern areas, the
community areas will include the public buildings, schools and recreation
spaces as well as mixed-use commercial services and hotels​.

Hospitality
property continues to be the segment with the highest potential in 2016 and
into 2017, according to "Vietnam’s Real Estate Market 2016-2017: Overview
and Forecast" conference. A plenty of hospitality projects were launched
this year, accounting for 10 per cent of the total projects. Investment in the
hospitality real estate segment is the trend and results in big benefits for
investors in Vietnam. In particular, the country will host the Asia Pacific
Economic Cooperation (APEC) summit in Da Nang next year that will be another
opportunity for developing the segment.

Vietnam-based
asset management firm VinaCapital and its Hong Kong and Macau joint venture
partners have set a timeline for the long-stalled USD 4 billion tourism and
leisure project Nam Hoi An, re-branded as HOIANA. The resort and casino complex
development is expected to launch the first phase in Q1, 2019, including a
445-room hotel, 200 apartment-suites for sale on a buy-to-let basis operated by
Hong Kong’s New World Hotels and a variety of recreation facilities as well.

Hotel
Okura Co., Ltd. announced that it has collaborated with the Saigon Trading
Group (SATRA) to develop The Okura Prestige Saigon, which will be the third property
in Vietnam managed by Okura Nikko Hotel Management following Hotel Nikko Hanoi
and Hotel Nikko Saigon operated under the Nikko brand. The 40-story commercial
complex is developed on the site of the former Saigon Tax Trade Center, situated
in District 1, including 250 guest rooms, Japanese restaurants, multipurpose internal
amenities, and is expected to open officially in 2020.

Walk this way: Hanoi to extend pedestrian zone trial through first half of next year

According
to Mr. Nguyen Duc Chung, the chairman of Hanoi People’s Committee, a pedestrian
zone in the heart of Hanoi has been on trial for the past four months and the
city is decided to expand it from January 1 to June 30, 2017.

The
underground parking lot of the central city has recently approved. The
one-hectare lot with the capacity of 3,000 motorbikes and 100 cars will be
built beneath the Saigon Zoo and have an entrance on Nguyen Thi Minh Khai
Street. Until now, there is neither set official date to begin the project’s
construction nor a timeline for when the parking lot will be complete.

Central
Da Nang city is planning to build a 4.4ha Central Square in the city’s downtown
that will serve as a landmark tourism attraction, shopping and public
entertainment site. The project would cost around USD 31 million. According to
the city’s construction department, a design contest has been launched
challenging domestic and foreign companies to create the concept in a ‘green’,
peaceful and friendly style.